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12 PAGES

Reports Reduction Of Civic Debt By Substanti al Amount

A surplus of 313.37? in capital scccount. representing the first so duciion in the City's debt since the year 1948, was reported by Coun. Edwin C. Johnstonc. chair- man of the Finance Committtee. at the annual meeting of the City Council last night.

The city's net debt at Dec. Cl, 1955. was 33.7ti6.B4l as against 83,7-15.570 on Dec. 31. 1056.

Total revenue amounted to 81.- 0.'i7.752. and total expenditure ti.- n2s,az4, leaving a surplus of 839.- 407.

The committee was not satisfied with the collection of the educa- tional tax. and proposed taking immediate steps to improve this condition, Coun- Johnstune stated. Following is the text of his report:

"As Chairman of Finance, it is my duty to submit a report, ae- companied by the Financial State- ment for the fiscal year. prepar- ed by the City's auditors from the records of the City Clerk. These reports give a clear and concise picture of the City's financial op- erations during the year, and also the City's financial picture at the close of the year.

"However. I feel it my duty u

affairs. but who have not the time necessary to study the auditors” report.

'Your Finance Committee had, as one of its rnernbe a, Mr. D. Eisner MacDonald. an expefjenc. ed and valuable Councillor. On his resignation, his place was fili- ed by Councillor Foster. who has already shown a keen interest in our Civic affairs and a thorough grasp of our ya blemi-

DIRICT RELIEF

"It has been the custom. for a long period of time, for the F1- nance Committee to shoulder the responsibility of supervising the handling of Direct Relief. This year. I am pleased to state, we were able to have this work done by the Catholic Social Welfare Bur- eau, under the direction of Sister Mary Henry. C.S.M. and the Pro- testant Welfare Bureau. under the direction of Mr. Baker. We felt that Direct Relief could be ad- rnlniste t more effectively by these two organizations, but until such time as a Protestant Welfare Bureau was formed. this method

Chairman. to offer a few observe-. firms to those citizens who are in- terested in my conduct of the City's

TOWN. CANADA WEDNESDAY, JANUARY 30. 1957

S'side Plane Aids Survey Ship in Ice

HALIFAX (CP) - An RCAF Lancaster aircraft was assigned Tllndly to spot ice for the new 84,000,000 hydrographic ship Baf- fin. battling ice iloes in the Gulf of St. Lawrence.

The Baffin. en route here from the builders yards at Lauzon, Que.. requested assistance after running into heavy ice. She gave her position as 30 miles northwest of Bird Rock in the Magdalen

Islands. Headquar-

I . I

I r

Search and " ters here said a Lancaster based at Summersidc. P.EI.. was diverted from a Gulf of St. Lawrence patrol to aid the Baffin.

S500,000 Hotel Fire At Sorel

SOREL, Que. (CPl - A wind- whipped biae struck a S500.000 blow early Tuesday at Lhis St. Lawrence River industrial city. sending more than 40 persons tumbling to safety in near-zero temperatures.

Police sifting through conflicting reports of casualties said late Tuesday "it appears there was no loss of life."

MB. JOHNSTON!

was impossible. Concurrent with these organizations administering Direct Relief, the Provincial Gov- ernment was asked to pass a grant

(Continued on page 8 col. ll)

P. M. Defends Grants To Universities

OTTAWA (CP)-ePrlmn Minister St. Laurent Tuesday defended fed- eral grants to universities as being in the national interest.

He said in the Commons there

OTTAWA (CP) - Canada's old- est cavary regiment Tuesday be- came the'third-and newest-tank regiment of the regular army.

It is the lib Princess Louise's (New munswick) llussars. a mill- tia unlt at Sussex. N.B., which has been called to the regular army under the new name of 8th Canadian Hussars (Princess Iaouiseial.

Defence Minister Campney an- nounced in the Commons selection of the regiment. adding. that it will be stationed at Camp Gage- town. N.B.. with a squadron of Valcartier. One.

The regiment can trade its his- tory to the American of lmughumlt crews. as name of satin- dbrs' Horse, after its first com- Arn:ndet. Lt.-fol. Johnishundebr:

army spo esman sad s F'l'he grants were bull! in 13 - lleved Canada's oldest cavalry .xcept for their first year our ugmgm, bee universities have not so- trmed them.

Laval and Si---i ' i allies already have said they will not collect the expanded grants.

Signs Corrected -

For Immigrants

s'l' CATIIARINE. Ont. (cP)- Tha European'a love for the pro use meaning of words brougH about a name change in signs by the Ontario department of

says.

he highways departrrient for some time has been receiving this tvve of question from European ;tewgc:msrsu:""lYBy arerwe not al- fall. , W W "7 ' The plane nosed over on land-

The department did some lnvee- ing. Two ligating. It discovered that the him still in the mm "K off the boulevard"- he

lnfrlnsi-s all "the exclusive lqislative jurisdic- tion" of the provinces. '

”This is something that is in the interests of the nation as I

able to the proper development of the nation as a whole." Mr. st. Laurent spoke as the Commons opened discussion of a requested appropriation which would double federal university grants to s1s.ooo,oao.a year. The proposal was supported spokesman for all three oppositin Rises (PC :-

However , - Trols-Rlvieresl oated ii is or Dosed to the move. The debate

was adjournediuntll the events .

DES MOINES. II. (AP)-A stu- dent Pilot who had never flown alone stole a plane at gunpoint andbunedthiseityforfoursut

penseful hours Tuesday before crash-landing on a rural road. Police identified him as Boy

the air force rejected him lad

street. so the department substi- twp guns in the ping, 11;.y- um mod the word "median" instead. soderqulst told them there till

Though this decision was wassolusgasiathecrart leached sometime ago. it may Pol said theywere boflveyears allslgnsarnwithcallsfrompersmu r-hanged. The become "hysterical" Ilsns because or soomed and circled the city

removes others for rant! reuonl.

King Saud Welcomed To The U. 5.; Snubbed By New York

New Armored Regiment Named

since then the gllnent has had On

Student Pilot Steals Plane, Terrorizes City For 4 Hours

"5 hospitals. schools and the Iowa

As many as 10 were reported dead earlier, and police said pend- ing a full report on stragglers that "if there were any victims. we may not be able to tell for a day or two."

Destroyed were a 40-room ho- tel. a printing shop, tavern, jew- elry store and lingerie store, plus a number of tenements above the business places. At least 14 chil- dren were among the dwellers put to flight.

Sorel la 50 miles east of Mont- real.

various names. It was organized as an armored unit just before the Second World War but still re- tains a link with its old cavalry days.

A horse picked up in Italy dus- ing the war still is with the reg- iment and is trotted out on car- emonial occasions.

Mr. Campney said the ranks of the new armored reigment will in- clude personnel of two disbanded infantry battalions-the 3rd and 4th of the Regiment of Canadian Guards, formed in 1953. Person net of the disbanded units also would be used to strengthen the remalnin two guards battalions. atlantioned at Camp Petawawa.

Disbanding of the two gusrsh battalions leaves the regular with 18 infantry battalions.

The 8rd Guards Battalion h French-speaking and is stationed at Valcartler. The 4th, English- speaking. is at Camp Ipperwssh.

Fewer Cases Of TB Are Reported

0'I'l'AWA (CPI - A drop of 926 in the number of cases of tuber- culosis last year pushed the TB rate to the lowest point since 1929. the bureau of statistics re- ported Monday.

Cases reported dipped to 9.2!! from 10,170 in 1955. Reductions were recorded in all provinces ova and Manitoba to give a case rate of 57.8 per 100.000 population. This compared with a rate of 65.3 a year earlier. The high since 1931

was 123.2 in 1944. signs of

The bureau said the

' . in TB were due to the ef- fects of higher Canadian living standards, new treatment methods and expanded anti - tuberculosis services.

Between 1981 and 1955, the chances of dying from TB declined by llllrly 88 per cent. But chances of first contracting the disease dropped only six per cent and new cases and first admissions to sani- clung more closely to the brewer levels.

In another report released si- multaneously. the bureau said rev- snus of 56 tuberculosis saniloria reached a record !.'il.241.532 in 19”. up from 331,174,016 the pre- vious year.

Main sources of revenue are from provincial grants, with smaller percentages from paying patients and the federal govern- ment.

Expenditures decreased in I955 to 31,13,350 front 331,520,269 the roar prwvlous. but the cost per pltient day has increased steadily from 82.00 in 1942 to 57.03 in toss.

them to "shoot it down."

LESSON DUE

James Doleull. I flying lnltrno for. said he was preparing to tabs Soderqulst up for a lesson whu the student forced him from the plane at gunpoint and took off.

The fantastic flight was marked by mounting tension as the red. single-engine craft seemed to nar- rowly miss downtown buildings.

State House itself. Office workers ran from window to window as the plane circled and dipped. disappearing behind build- ings and then zooming into view again Tleevlslon cameras were taken to rooftops and the craft'l passes were photographed.

spotting planes kept the wild movements of the P18"! in "'0' stant sight. Radio station's lb ported its location moment w moment.

SCHOOLS WABNED were warned of

CEMENT PLANT RAZED

CORNWALL. Ont. (CPi..r'ire of unknown origin Monday night cluspd sioo.ooo dapnage in gun; men mixing pant ere w ic

lllpplylng some sections of the St. Lawrence power develop- lllllt ject. The fire, which sp- it started in the batching llllnt. destroyed the batching slant anti conveyor belts.

Congider Revising Freight Rates Aid To Maritimes

The need of municiplaities a- cross Canada for an increased share of the tax dollar was em- phasized by Mayor J. D. Stewart in addressing the annual meeting of the City Council last night. Fol- lowing is the text His Worship'a reports:

The year now ended. the mist. in the life of Charlottetown. and the first in our second century, is one of which we can all feel justly proud. We have kept within our estimates, and have reduced our City debt. These are two very im- portant facts and mark a splendid beginning. Let us hope they are criterion of the future. and that

” ,, Councils will follow our policy of rigid economy.

We are starting our second cen- tury with a per capita debt of s2:il.00. Our aim should he to re- duce this to the very minimum. and this can be accomplished by continuance of sound administra- tion.

As we start our second century ,in the life of our Municipality. might I say, like every other Mun- iclpality in Canada, the whole fa- bric snd vital institution of our type of Government is uncertain in the changing economy of our Country- The duties of Municipal Government. which is traditional but in reality natural and essen- tial. are still left upon the local Government, but. they have not left the taxing power nor given the resources adequate to the dis- charge of the functions, which cu- tom and changing conditions corn- bine to make increasingly com- plex and costly.

NEW APPROACH NEEDED

The retention inf conrtitutional rights and duties without the fi- nancial means to discharge them would seem to call for a new and different allocation of the respon- sibilitles among the three levels of Government, and that a bigger percentage of the Canadian tax dollar be allotted Municipalities.

The functions which rest with Municipal Government in - Cana- da are both historically and pro- perly best discharged by the form of Government closest to the peo- pic. but they cannot be so served

without fundamental realignment of taxing powers, as between the Provinces and the Municipalities. In other words. if our Municipal- ity is the creature of the Prov- inoe. and it is, then our problem is one of Provi cial-Municpal rela- tions. following upon re-alignment and adjustsment of Dominion-P.o- vincial relations.

As your Mayor, and as Presi- dent of the Federation of Mayors and Municipalities of Canada, it was my extreme pleasure to be present at, and head of the Muni- clpal delegation who were invited to sit in, for the first time. at the Federal-Provincial Conference in Ottawa. in the late Fall of 1955. This, in itself. is indicative of the important position of Municipal-i ities, and is a step towards the

Some Provincial Governments, recognizing the claims of Munici- palitlca. have already introduced policies which provide supplemen- tary revenue to them. Such being the case in other Provinces. and as Charlottetown has as much at stake in any re-distrubution of Federal-Provincial revenues as have the Federal-Provincial Gov- ernments. we appreciate the fact that our municipal points of view may now find expression by Mun- icipal representation within the Council of the Provincial delega- tion attending Federal - Provin- cial Conferences, where these mat- tors are under discussion.

The result of such representa- tion, we hope. will take concrete shape by means of further taxing power. or grants in lieu of taxation waived by centralization of cer- tain fields of taxation. or by the equal treatment of Government of Governments (both Federal and Provincial) and the citizens in our Municipality. Referring to the last. may I say that. as a re- sult of the last meeting between the Federal Government and the Executive of the Federation of Mayors and Municipalities in De- camber. it is my understanding that this principle of equal tax treatment has been accpeted by

new allocation of responsibiliiiesn SUPPLEMENTARY nnvarwr: . '

Mayor Stresses Need For Adjustment Of Revenues

MAYOR STEWART

can now assess Federal property in its entirety, within our limits. Our hope is that our Provincial Government will also acknowledge our right in this respect. If these two sources of revenue were open- ed to us, they would go a long

iRatcs Act to provide more help

PRICE5c

Involve Shift In Treasury Grants Emphasis Under Act

system for the sugested change- over. I could involve shifts in the suuldy on general types of freight rates-such as competlfdvl and commodity rates-or it could be made to have particular ap- plication to movements of spee- ific products.

All will depend to some extant on reaction from such groups as the Maritime Transportation Commission and the Maritime! Economic Council. in addition is the four overnments of the prov- laces.

No Deaths As '-Plane Crashes

PARIS (AP)-A French alr- liner from Tunis crash-landed in dense fog at Orly Field Tuesday night but all 70 aboard were saved by heroic rescue efforts.

About 50 persons were injured. some of those taken to hospitals were in serious condition.

. One engine burst into flames on impact, spreading blazing gan- olinc around the wreckage.

The big plane flopped over on its back under the shock and fl broke into four pieces.

Fire engines and ambulancd sped to the scene. about two mllu away from the main terminal.

Air crash specialist from th

OTTAWA (CP)-Federal experts have come up with plans for dras- tic revision of the basis of freight rate assistance to the Maritimes, though they have not yet reached the cabinet.

The proposals, it was learned Tuesday. involve a shift in the

mphhsis of treasury payments under the I927 Maritime Frerht

for rail freight moving out of the Maritimes than for traffic within these Provinces.

However, informants sadl no ac- tion is likely until the government gets indications from the seaboard provinces that s t s' changes are considered suitable.

The plans would not change the over-all amount of federal money going for the reduction of freight rates - now about 8l3.000.000 a year-but wouldisput more empha- sis on helpin mgove Maritime products into other parts of Can- ada.

The government is expected to move cautiously, however. Inforrn- ants say its experts consider the Maritimes could get more benefit than they now get if the basis of payments were to be shifted.

PAYS SUBSIDIES

Under the 1927 act. the treasury ,pays for Z)-per-cent reductions in ithe freight charges on goods mov- in within the Maritimes and on the Mgaritimes part of hauls from that area into other parts of Can-

way in the amelioration of our tax

The need for more revenue a- rises with the demand for more services. The modern Municipal Government has gone a long way since the protection of life and property were the main functions. Today. education, traffic. devel- opment of new building areas, and financing, are the four fundamen- tal tasks confronting us. as a Coun- cil. The other tasks as carried on by the several committee of the Council are likewise import- ant. and require much time. thought and energy. If it were not for the great interest of your Coun- clllors acting as a whole or in com- mittee. we would not be able to present the picture which our Chairman of Finance will give in his report.

the Federal Government, and we

Continued on page 12, Col. 1

adjourned at least until Thursday delegations.

one point speake . were talking

world.

Then Canada's Lester Pearson threw his support behind the lat-

Mlddle East peace and adjourn- ment followed.

3! not setting a time for re- newal of the debate. assembly president Prince wait of Thailand.

working out of an Israeli with

UNITED NATIONS, N.Y. (CF) ment. A stormy Middle East debate in The Canadia the United Nations Tuesday was plan says:

to the relief of frustrated Western Ml-1.57 WWRDRAW F 1351'

The debate got so hot that at d"”"-

about a new Middle East war Pdhere l” me” which might involve me WM" agreement and refrain from gn

est United States proposal for-

uve I brawl” .pm.e to em”. tihe areas has been the subject of , ispute.

drawal formula and full settle-'

-lulu backed

1. Israel must complete its with-

2. Both sides must scrupulously 1940 armistice

acts of hostility.

3. Some arrangement then might be made for the deployment of the UN Emergency Force on both sides of the armistice line. in the Gas Strip and the Gulf of Aqaba.

These areas have been held by Israel.

Deployment of the UN force into

Secretary - General Dag Ham.

NEW YORK (CP- King Ssud charter and said: of Arabia arrived an a state "We stand on moral prlucl 9 ' visit that! Btatesrusoonthefnedosnaaddlgnlty or ....'.c..'.--::'.-m..:-.vr..:-... i Y CCOUD S "3 YZ9 sides: but with as official one from New York Gt. . e ----a-....------ I R t B A dt :.':-.h;,:,:.,, ::.,,':''';,,'','';f.: I1 epor Y U I Ol'S ,, . call. The United Nations quad Total taxes outstanding at be it illustrates the seed for a As reported by II! llll rear. en- fur a so comes: at. use are us:.sn57. mu. elhrt tang: collection It t'ain'matuoritl::ml,nm-IKE required PM I l SSIIQ dE&IIZQ ...”:':.."::".....'l""'t...'?.l.""'... '1-"-'1'-'-."'"--'-"i-f"s'-v-'"-3'-3'3 ::..'." ..... am; I..""i'”': a""-...:: ".3": ' ' ' UT. , . l I Ill C II III New York City ceremony on vie I Md-N -f 377-050-7& AWN" on the cursor mitt overllrllfty. the condition of the bsadlrnarbst. lllng luminaries. He dlsmlspsd tb I Ind otnnparlsn is the total tax collc- and Ialess tax collections are lm- they were not issued in IQ. be cl'fl.0lIIfCI es antifvluwgh. slit elovdd. III iacdluding ar- "1" , eh ..gnQhe:jfg.Qjog 3 gmuldlbetgued anus-o'on':.s (as: - asnoun 0 - IX I e. ll mean , was not unn- 4'" ""0333 he total levy for the mm. In fact. collection in cur- ital Funds show a liability to "Mil I the United Nations. p iltand Its IEO was hand ml sans. a difference of ruzt map: arrears of at lea: Sinking Funds for this amount WWW '""""'”'l9III- - IIIOII ncluesr'Ilevy 'l'henetdehtofthecity.eonsiI- I soon-. rt-each amt w s ensues theealywaytoprevesttbi.o(her olnebentures ndhoanaf ::.:.'. :.'.'-..'.'.:.”:..”:.""' .. m... ''':...'".':'.'I'''''.. "”""”"”" "'.:.-'--9"'-"'-'- cm". '-'-i-- 3;,” gm-1"-cc:-g if. L, ' - counts aya e. es: s S--”"'.m 3.1-; . ---...., 2-..:,-.-:.-. c-m --. u... M r;-::..2;!.:r;.: -r.:.:'.-.':'::.':-no ' v ., ' wsulsa'tssIotsssnss.- tasoslyseweeeesturntsuea 0' '"-'7"-”- ..'''.'.i'"......” "'”F":..'". -3'''-----”'"' """"' '” ' "I ...".:.ra."" '''-'--'e .'.:''r..........,.''- "" '':.-.-.:::.-''.:.' ---u r-- --- --- M-terncsusca.u.s.mmn-at '1I0'-If-llwvh-E-Ile auasdsisaus nu. ...,,,,,,..... mum tn-alums-no-u -vi-saoususuvaawnerrlll-UII-lli-Ih e-ID-us. latest .5”; .,..”,,..,,,..,.,i.etalncru-tttytnesa-oer-ltr-t :3-nhu:aaosns.uaano1:30':I'-it.-.hVH0II-I-1:,.'.ntIt's l:.t:ansss,........g,..,...r -haadwehavethetreob Pmtsnt st.m..'o".".".a' a. lumen can-no eh-vi-h to nu ms. and ' su.- ....'.'l.'ZN.i' " .. .'"..,,..'l Ihmtltkdtyeccoutsnmlet pa nt.u.""" TIE: -, ""t"""'”""i”'- .31: evssdebeatvasasssl .1I.Itiestetr-7"'5'”'i"l”,;""l:"n '”"': . I, ,. . "T"” ""'.&'-""""u:"."s"iia"' "T-no ”""""""""""""'"'"'"'-um -stung!!! "D sits Id. nay .. -I-as-as aaswsnt-nalsustne. -&":.g..T'."'”'T.:'.tvvIlIlt-I Idrlglltlti an-ua1:-swab! nollshete aesse""t"""""'”"'-'”'W II V was sun. In casunus cases: it. Ms